Organizational Analysis In Personnel Management

Organizational Analysis and Design

MMPM 1PERSONNEL MANAGEMENT CLASS – GROUP 2

Organizational Analysis Defined

Organizational analysis is the process of reviewing the development, work environment, personnel and operation of a business or another type of association. (BusinessDictionary.com)

This review is often performed in response to crisis, but may also be carried out as part of a demonstration project, in the process of taking a program to scale, or in the course of regular operations.

Organizational Analysis

Conducting a periodic detailed organizational analysis can be a useful way for management to identify problems or inefficiencies that have arisen in the organization but have yet to be addressed, and develop strategies for resolving them.Organizational analysis focuses on the structure and design of the organization and how the organization's systems, capacity and functionality influence outputs.

Significance of Organizational Analysis

Undertaking an organizational analysis is helpful in assessing an organization's current well-being and capacity, and deciding on a course of action to improve the organization's long-term sustainability.

A restructuring of an Organization may become necessary when either external or internal forces have created a problem or opportunity for improvement in efficiency and effectiveness.

Significance of Organizational Analysis

When performing an organizational analysis, many details emerge about the functions and capacity of the organization. All of these details can make pinpointing what is efficient and inefficient difficult.

Using theoretical organizational models can help sort out the information, and make it easier to draw connections.

Organizational Analysis Models• Strategic Triangle Model• SWOT model• The McKinsey 7S Model• Rational Model• Natural System Model• Sociotechnical Model• Cognitive Model• Meta Models

Strategic Triangle Model

This model relies on three key calculations to determine the efficiency and effectiveness of an organization. • First, is the value, or mission, that guides the

organization.• Second, is operational capacity, the knowledge and

capability to carry out the mission.• Third, is legitimacy and support, or the environment that

authorize the value of the organization, and offer support, (specifically financial support).

SWOT Model

• A SWOT analysis (alternatively SWOT matrix) is a structured planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture.

• It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective.

• The degree to which the internal environment of the entity matches with the external environment is expressed by the concept of strategic fit.

SWOT Model

• Strengths: characteristics of the business or project that give it an advantage over others.

• Weaknesses: characteristics that place the business or project at a disadvantage relative to others.

• Opportunities: elements that the project could exploit to its advantage.

• Threats: elements in the environment that could cause trouble for the business or project.

SWOT Model

• First, the decision makers should consider whether the objective is attainable, given the SWOTs. If the objective is not attainable a different objective must be selected and the process repeated.

• Users of SWOT analysis need to ask and answer questions that generate meaningful information for each category (strengths, weaknesses, opportunities, and threats) to make the analysis useful and find their competitive advantage.

The McKinsey 7S Model• The McKinsey 7S Framework emphasizes

balancing seven key aspects of an organization, operating unit, or project.

• Three of the seven elements—strategy, structure, and systems—are considered "hard" elements, easily identified, described, and analyzed.

• The remaining four elements—shared value, staff, skill, and style—are fluid, difficult to describe, and dependent upon the actors within the organization at any given time.

The McKinsey 7S Model

• The 7S organizational analysis framework is based on the premise that all seven elements are interdependent, and must be mutually reinforcing in order to be successful.

• Changes in a single element can result in misalignment and dysfunction throughout the organization, disrupting organizational harmony.

- Robert H. Waterman et.al - "Structure Is Not Organization".

Rational Model

• The rational model views organizations as a mechanism that is made up of various parts that can be modified in order to create an output in the shortest amount of time and without deviation.

• The rational model stems from the Frederick W. Taylor's (1911) Structural Perspective. It was Taylor's stance that organizations should be as mechanistic and efficient as possible.

Natural System Model

• The Natural System model views organizations as an organic organism which is holistically interconnected.

• The parts of the organization are not seen as independent units but rather as a whole that can orchestrate together to prepare for inevitable change.

• The natural system model is in many ways the opposite of the rational model in that it focuses on the activities that may negatively impact the organization and therefore aims at maintaining an equilibrium in order to meet its goals.

Sociotechnical Model

• The sociotechnical model, also known as Sociotechnical Systems (STS), is an approach to complex organizational work design that recognizes the interaction between people and technology in workplaces.

• The term also refers to the interaction between society's complex infrastructures and human behavior. This model identifies the environment as a key factor that interacts with the organization.

Cognitive Model

• Behavior, cognitive, and other personal factors as well as environmental events, operate as interacting determinants that influence each other bidirectionally.

• Personal goals of the managers and staff are seen as assisting in the effort toward organizational objective attainment.

• Decision making processes are focused on and specialization is deemed as important to the flow of information.

Meta Models

• Based on a theorized blindness of a single perspective, Lee Bolman and Terrence Deal have designed a model that splits analysis into four distinct paradigms.

• These 'frames' are to be used as a pluralistic model, and therefore allow analysts to change thinking by re-framing understanding and points of reference.

Meta Models

1. Structural Frame. Here organizations are to be understood by role definitions and clear hierarchy. Problems come from overlapping responsibilities and unclear instructions. The assumptions are similar to the rational model shown above and Taylorism.

2. Human Resource Frame. According to this frame organizations exist to serve society, they are places for growth and development. Problems come from when people are not motivated or trained sufficiently.

Meta Models

3. Political Frame. This frame posits that organizations are cutthroat jungles, where only the strongest survive. Problems come from poor power coalitions or overly centralized power.

4. Symbolic Frame. This frame supposes that organizations are deeply symbolic and successful business is about the representation genuine meaning. Problems occur when actors fail to play their parts.

Organizational Structure

• How an organization is structured depends on the coordinating mechanism used to produce the product or service.

• Henry Mintzberg outlines five ways to consider labor division:

Organizational StructureHenry Mintzberg outlines five ways to consider labor division:1. Simple Structure: Direct Supervision with little specialization2. Machine Bureaucracy: Standardization of work with horizontal

and vertical specialization3. Professional Bureaucracy: Standardization of skills with

horizontal specialization4. Divisional Form: Standardization of outputs with some horizontal

and vertical specialization (mainly between divisions)5. Adhocracy: Mutual adjustments with much horizontal

specialization

Thank You

End of the Report